Report for Asia and Eastern Europe

The global recycled plastics market is still challenged by weak demand fundamentals and increasing trade restrictions. While virgin PET prices have softened, recyclers continue to struggle with a widening cost gap, making recycled content financially unattractive for many converters.

Recyclers operating outside legally-mandated sectors such as beverage bottles are facing growing margin pressure as end-users increasingly expect recycled materials to be discounted compared to virgin, forcing many recyclers - especially in Europe - to sell at a loss. This unsustainable dynamic has led to a wave of insolvencies across the continent in 2024 and the first half of 2025. These developments once again highlight the critical need for robust, enforceable minimum recycled content mandates, with clear penalties for non-compliance.

In South East Asia, Malaysia officially banned imports of plastics scrap from the USA with effect from July 1, citing Basel Convention alignment. Although implementation is still evolving, the initial impact has been paralysed port operations, frozen deals and uncertainty for recyclers who depend on imported feedstock. There is speculation that non-OECD imports may be affected next, pending clarification from SIRIM Berhad.

Meanwhile, rPET pellet prices in South East Asia have edged slightly higher but remain far below European levels.

India continues to enjoy relative stability, with rPET prices rising slightly. Despite ongoing enforcement of the national 30% recycled content mandate for PET bottles, market uptake is still patchy. Domestic recyclers are actively pursuing export opportunities - especially with Europe, where high prices offer an attractive outlet despite freight volatility.

In China, oversupply and weak local demand are keeping prices stagnant for all recycled resins. Export competitiveness remains low owing to global oversupply and buyer caution around quality and certification.

European rPET prices remain high: flakes in north-west Europe are trading at Euro 1360-1420 per tonne FD; and food-grade pellets have hit Euro 1620-1700 per tonne, even exceeding Euro 1800 in Italy owing to local feedstock costs. Despite strong prices, sellers report difficulty in passing on cost increases in full owing to the widening gap to virgin PET. Imports from Asia and North Africa continue to gain ground. Eastern Europe is seeing modest price increases, supported by stable demand and more competitive bale costs, especially in Poland.

According to ongoing consultation with the European Commission, a new implementing act under the Packaging and Packaging Waste Regulation is expected in this year’s fourth quarter. This aims to harmonise the calculation, verification and reporting methodologies for recycled content, including material from non-EU markets.

Among the key takeaways, recyclates from post-consumer plastic waste originating outside the EU may be allowed, so long as they meet EU-equivalent quality and process standards.

Petcore Europe is actively lobbying to ensure import quality parity to avoid the market being flooded with low-grade material, while not banning imports outright.

The final methodology for recycled content recognition, expected by the end of 2025, will clarify whether Asian rPET can count towards EU bottle targets. Until then, exporters face uncertainty but should prepare to meet European-quality documentation and process traceability standards.

As regards shipping developments, freight costs from South East Asia to Europe and the US Gulf remain significantly elevated compared to pre-2022 norms, although largely stable since the second quarter. Trade route disruption owing to regulatory friction and geopolitical instability continue to impact reliability and costs.